Publication date: 19 Dec 2023
Gross Gaming Revenue (GGR) is the amount of revenue an organization generates before deducting mandatory fees, the cost of various bonus programs to attract players, organizational and other expenses.
Sometimes GGR can reach really astonishing scales. According to the latest figures from the European Gaming and Betting Association (EGBA), Europe’s GGR is set to reach €126.3bn by 2026. Analysts claim that a steady period of growth in gambling revenue will begin from 2022. The main growth factor is the increase in revenues from the online betting sector, whose share in the coming years should reach 61% of the total gambling market.
How is Gross Gaming Revenue (GGR) calculated?
The Gross Gaming Revenue formula is calculated as follows: GGR = A – B (where “A” is the sum of all bets placed by players and “B” is the winnings paid out on them).
For instance, players at an abstract online casino made $4 million in bets during the year and won $2 million.
Thus, the value of A = 4,000,000; B = 2,000,000.
GGR = 4,000,000 – 2,000,000 = 2,000,000.
Pros of GGR:
- allows you to evaluate the financial efficiency of a casino;
- makes it possible to compare the revenues of different casinos with each other;
- enables you to determine which games are more profitable.
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